As per the communication received from SEBI, the Exchange vide it’s Notice No. 20151217-17 dated 17th December, 2015 had communicated the guidelines to the Trading Members regarding Schemes/Leagues/Competitions launched by Registered Stock Brokers.
SEBI now vide its letter No. MIRSD-2/OW/30292/2016 dated 3rd November, 2016 has partially modified the said guidelines which are as follows:
a. Stock Broker or its associates/group company cannot directly or indirectly, sponsor or be associated with any schemes/leagues/competition, etc. which may involve distribution of monies/prizes/gifts/medals, etc.
b. No reference to Stock Broker’s name, logo etc. can be made in any schemes/leagues/competition, etc.
c. Stock Broker cannot share any information of their clients with a third party, even with the clients’ consent, in case any third party is involved in launching schemes/leagues/competition, etc.
d. Stock Broker cannot take any financial liability, including any contingent financial liability, on account of any schemes/leagues/competitions, etc. launched by a third party.
Further SEBI vide its aforesaid letter has also communicated the Code of Advertisement for Stock Brokers which is enclosed as Annexure A.
Trading Members are requested to take note of the above and ensure compliance.
Gopalkrishnan Iyer Hemant Dharap
Brokers Supervision, Membership Compliance Membership Compliance
and Investor Services
The US Federal committee's meeting will conclude on March 16, 2022.
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